Driving less? Save on insurance

Are you carpooling, using mass transit or driving fewer miles to save on gas costs? You might qualify for an automobile insurance discount.

Consumer advocates said motorists who have made drastic changes in driving habits should contact their auto insurance agent and request a decrease in their rates.

In Florida, where annual insurance premiums are among the nation's highest - averaging $1,063 last year, according to the National Association of Insurance Commissioners - consumers can save from $57 to $172, according to an analysis by the Consumer Federation of America.

Low mileage discounts start to kick in with most insurance companies when a motorist drives fewer than 7,000 miles a year, said Michael Barry, a spokesman for the Insurance Information Institute, a trade organization.

Insurance companies calculate rates in different ways, but the miles a motorist drives in a year's time is part of the equation because of the risks of an accident.

"Auto insurance rates are partially based on how much you drive and how you use your car," said J. Robert Hunter, director of insurance for the Consumer Federation of America and former Texas insurance commissioner. "If you drive less to save money on gas, these driving changes might mean that you qualify for immediate insurance rate relief."

A motorist in Florida or elsewhere who goes from 15,000 miles driven per year - considered the average - to 8,000 miles could get a 5 percent discount in the annual premium, said Sam Belden, a consumer affairs specialist with insurance.com. A driver who reduces annual miles from 15,000 miles per year to 5,000 could qualify for a 15 percent discount.

Some insurance carriers will ask for your odometer reading each year and use that to calculate annual mileage.

Katherine Bell, a spokeswoman for Progressive, said insurance companies also consider risk factors such as type of vehicle and its safety features and the driver's accident history. Progressive, however, doesn't consider mileage to calculate rates, except in California where it's required by law.

Nationwide, Americans are driving 1.4 billion fewer highway miles than a year ago, according to a recent report issued by the U.S. Department of Transportation. And in recent weeks, 55 percent of Americans reported they have cut back on their driving as gas prices reached record highs in Florida and nationwide, according to an ABC News/Washington Post poll.

Mc Nelly Torres can be reached at mntorres@sun-sentinel.com or 954-356-4208 or 561-243-6600, ext. 4208.

INFORMATIONAL BOX:

Cutting your auto insurance costs

Car type: Do this before you buy a car because your premium is based in part on the vehicle's price tag, costs to repair, safety record and likelihood of theft.

Higher deductible: Requesting one could lower total costs substantially, especially if you are involved in a collision.

Multi-policy discount: If you have insurance for your boat, RV or motorcycle, some insurers give you an extra discount on the auto.

- Mc Nelly Torres

Find out more

To file a complaint and find information about an insurance company call the Consumer Services Division of the Department of Financial Services at 877-693-5236 in Florida and 850-413-3030 outside Florida.